Author Question: If negative externalities are present in a market, ________. A) the price charged in the market ... (Read 117 times)

09madisonrousseau09 · **on:** Jun 29, 2018

If negative externalities are present in a market, ________.

A) the price charged in the market is higher than the socially optimal price
B) the quantity supplied in the market is larger than the socially optimal level
C) the marginal social cost of production is lower than the marginal private cost
D) the average cost of production exceeds the marginal cost of production at all output levels

Question 2

Why do multinational corporations typically pay vastly different wage rates for the same work in different countries?

A) Prospective employees have much better alternative opportunities in some countries than in others.
B) The cost of living is much lower in some countries than in others.
C) The demand for labor is much more elastic in some countries than in others.
D) Supply and demand determine wage rates in some countries but not in others.
E) Unions exist in some countries but not in others.